Doing your own taxes can be fun if you like the challenge, but for people who do not have the time or the patience to complete this challenge, hiring the services of a tax professional is the only way to go. You can easily find a tax professional anywhere you go; however, can all tax pros deliver? In every profession, you will find experts, novices, and everyone in between, but when it comes to doing your taxes, especially your business tax returns, you should choose carefully and choose only the best to avoid making unnecessary claims, which may result in the Canada Revenue Agency (CRA) breathing down your neck because, while you may not prepare your own, you will be held responsible for what is on it.
This time of year, a variety of tax scams abound. And one of the most frequent scams we see during tax season is that of the crooked tax preparer. While most tax professionals are nothing less than honest and ethical, there are still the select few who show up right around this time every year intending to harm. Unqualified tax preparers may overlook legitimate deductions and/or credits, which could result in you paying more tax than you should. Services vary from preparer to preparer, so you will want to find one who offers the services you need. To help prevent you from being duped by one of these unscrupulous individuals, here are a few red flags to be looking out for while having your tax return prepared this April:
If the refund amount you’re receiving seems too good to be true, assume that it probably is. Unscrupulous tax preparers have a habit of enticing taxpayers to claim deductions or credits that they are not eligible to take. Such behavior may draw more customers (and therefore, more income) to the tax preparer during tax season, but it can cause significant harm to the taxpayer in the long run.
All items claimed on your tax return should be backed up with legitimate documentation. If your return preparer is simply plugging numbers in without referencing your support documents, that’s a sure sign that you should probably take your business elsewhere.
A tax return is a legal document. Make sure to take the same precautions you would with any other legal document before signing off on your tax return. While it may be time-consuming to review every line on your tax return, every taxpayer is responsible for the information documented on their return – regardless of who prepared it.
If you choose to use a paid tax preparer, you must find a qualified professional. Even if someone else prepares your return, you are still responsible for the content and for any additional payments, penalties, and interest that may result from an error.
Of course, those are just a few red flags to look out for when searching for a trustworthy tax preparer! If you are looking for a professional tax accountant who can lead you through the process of claiming business expenses on your tax return, then feel free to reach out to Filing Taxes at 416-479-8532. Schedule your tax preparation appointment with us and take the first step towards proper management of your finances. Our professional personal tax accountants will make sure to get you the maximum tax refund on your personal tax return.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.